employee's contributuin to P.F. ESI

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This query is : Resolved

CA Abhiram Bharat. (Querist)

13 July 2011 hello experts,,
please let me know what happens practically,
we all are aware that employer's cont, to P.f.etc is allowed if the same is deposited by the duedate of furnishing ROI, but the EMPLOYEE'S cont, should be deposited by the employer upto the due date of RELEVANT ACTS (i,e, PF Act, ESI Act).i.e. 15th of next month,(20th, or 21st of the following month including the grace period as suggested by the guidance note on TAX Audit by ICAI).
& if the EMPLOYEE'S cont, has not been deposited by the employer by the said date(i.e.20 or 21 of next month ), then no deduction is allowable to the employer u/s 36(1)(va) of the IT act. it will be the income of the employer U/S 2(22)(x).

now please tell me, since there is a contradicting judgement of the delhi high court (2010) in case of AIMIL LIMITED, which advocates that the employees cont shall be allowed to the employer if the same is also deposited by the due date of ROI furnishing..

but practically what happens that every company delays by one or two days,,then, wud it really be the income of the employer if he fails to deposit the employees cont by the due date of the relevant acts.

I want to know what is to be done practically..

please explain me in detail.

kind regdards-
abhiram
09268382789.

CA Navin Jain

CA Navin Jain (Expert)

13 July 2011 Yes,
that the employees cont shall be allowed to the employer if the same is also deposited by the due date of ROI furnishing..

Many organization getting the benefit of such judgement

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